Chicago PMI falls more than expected

The Chicago purchasing manager's index (PMI) fell more than
expected to 51.5 in August.

Economists had forecast that the reading dipped slightly to 54.0
from last month's 55.8,
according to Investing.com.

"Economic activity slowed down into the summer, suggesting June’s
momentum was only a temporary revival in activity," Lorena
Castellanos, senior economist at MNI Indicators wrote in the
report.

"Overall, it wasn’t a rosy month, with Employment the only
measure that gained traction. On a trend basis, though, the
July-August growth rates paint a slightly better picture – albeit
still weak – than that seen earlier in the year."

The reportadded that the
drop in August was led by "a large setback in Order Backlogs and
a deceleration in New Orders."

The Chicago PMI reflects the health of the manufacturing sector
in the Chicago area.

A reading above 50 theoretically indicates an expansion, while a
reading below 50 suggests a contraction.